Technical analysis: GBP/USD steering forces feeble around support base
|GBPUSD is consolidating in the proximity of the support foundation of 1.3564-1.3621, which has defended the positive structure from the beginning of February. The converging simple moving averages (SMAs) are currently lacking a clear direction in trend.
Furthermore, the short-term oscillators are indicating a phase where directional momentum is not decisive. The MACD, is flattening below its red trigger line slightly beneath the zero threshold, while the RSI is drifting sideways in negative territory. The stochastic oscillator’s %K line has dipped downward, signaling that the positive price action in the pair is under strain.
If sellers retain their minor lead, they could once again face the hardened support section of 1.3564-1.3621, which also encapsulates the lower Bollinger band. If this critical upside defense fails to avert a decline from evolving, the price may meet the January troughs of 1.3519 and 1.3449 respectively. Should selling interest intensify further, the bears could then target the 1.3303 support barrier.
On the other hand, if buyers make a comeback, initial resistance may arise from the mid-Bollinger band at 1.3754 and the neighbouring 50-period SMA at 1.3785. Overstepping these obstacles, buyers would need to muster a more profound upside force to conquer the 200-period SMA at 1.3839 and the adjacent reinforced barricade of 1.3867-1.3912. Triumphing over this resistance section, which also encompasses the 100-period SMA and the upper Bollinger band, the bulls could then propel to challenge the 1.4000 handle.
Summarizing, in the short-term timeframe GBPUSD has been ranging between the 1.3564 and 1.4000 limits. Furthermore, the pair currently is lacking directional impetus, which could create a new price course in the pair.
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